Exercise 11-46 (Static) Net Realizable Value Method with By-Products (LO 11-3, 5)

Denver Fabricators manufactures products DF1 and DF2 from a joint process, which also yields a by-product, BP. The company accounts for the revenues from its by-product sales as other income. Additional information follows: Required:

Assuming that joint product costs are allocated using the net realizable value at split-off approach, what joint costs are allocated to each of the joint products DF1 and DF2 and to the by-product, BP?

Note: Do not round intermediate calculations.

UnitsproducedAllocatedjointcostsSalesvalueatsplit-offDF127,000?$561,000DF218,000?$187,000BP15,000?$102,000Total60,000$560,000$850,000 \begin{tabular}{|l|l|} \hline & Joint Cost \\ \hline DF1 & \\ \hline DF2 & \\ \hline BP & \\ \hline \end{tabular}